For a conservative approach, wait for shares to drop two days in a row and buy near the open of the third day. Another approach that I favor is to sell cash-secured put options. Selling put options will lower your overall risk and can place the odds in your favor. Right now, I like the August $65 strike price puts as an option short candidate. I want to receive at least $1.98 for premium. That's above the current amount, but the market rarely rewards rushing into a position instead of waiting for an optimal entry.
The advantage of selling an August $65 put is that your overall risk is reduced to about $63.02 and below normal retracement swings. The timing is advantageous also. The next earnings report is a month away, allowing about half the time until expiration to decay. If Starbucks fails to continue higher and trades in a range near the current price, you still profit. That's why I like selling put options instead of buying stock. You gain if shares move in your direction -- and if they just sit there. If the shares fall, you lose less than if you bought a comparable number of shares outright. I expect Starbucks to continue delivering profits one cup at a time. At the time of publication, Weinstein held no positions in stocks mentioned.Follow @RobertWeinsteinThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.